Fewer kilometres driven: How to optimise your car insurance and save on premiums
29 Mar 2025
7
Minutes
Katrin Straub
CEO at nextsure
Have you driven significantly less this year than expected? Many drivers pay unnecessarily high premiums for their car insurance because the stated annual mileage no longer reflects reality. Find out here how you can save money by reporting lower mileage driven.
The topic in brief and concise terms
Report fewer kilometres driven to your car insurance to save on premiums or receive a refund.
A realistic assessment and regular review of your annual mileage is crucial for a fair insurance premium.
Exceeding the mileage could lead to additional charges or contractual penalties, so it's important to report promptly.
Quick Facts: Fewer kilometres driven and your motor insurance
The specification of the annual mileage directly influences the amount of your insurance premium. If you find that you have driven fewer kilometres than stated in your car insurance, you should report this to your insurer. Many insurers refund overpaid contributions or adjust the premium for the current or upcoming insurance year. A reduction of, for example, five thousand kilometres can already mean a saving of up to fifteen per cent.
It is important to regularly check the mileage and adjust it if necessary. An honest indication protects against potential problems in the event of a claim and ensures a fair contribution. Most insurers offer simple ways to report the mileage online or by phone.
Practical Guide: Accurately Determine Mileage and Claim Refunds
Have you changed your driving habits and are now on the road less? Then it's time to inform your car insurance about the reduced mileage. The first step is to accurately determine your current annual mileage. For instance, record your travelled distances over several weeks or use the odometer readings from the beginning and end of the year.
Here's how to proceed to potentially receive money back:
Check the odometer reading: Compare the current odometer reading with that at the start of the contract or the last report.
Contact the insurer: Inform your insurer about the new, lower mileage. This can often be done via email, online portal, or by phone. Explicitly ask for a retrospective adjustment.
Receive confirmation: Get the change and the new premium rate confirmed in writing.
Credit or premium adjustment: Your insurer will check if a refund is possible or if your future premium will be reduced. A reduction from twenty thousand to fifteen thousand kilometres can bring about a saving of approximately twelve percent.
Some insurers even offer a fair mileage policy, where you automatically get money back if you have driven less. The exact amount of savings depends on various factors, like your no claims bonus level and the risk categories of your vehicle. Knowing the premium rate of your car insurance helps you better assess the impact.
Understanding and optimally using the kilometre gradation
Insurers use so-called mileage bands to calculate the premium for car insurance. These bands divide the annual mileage into different ranges, for example up to six thousand kilometres, up to nine thousand kilometres, or up to twelve thousand kilometres. The higher the mileage band, the higher the premium usually is, as statistically, the risk of an accident increases.
If you fall into a lower mileage band due to fewer miles driven, you can save on premiums. There is no standard mileage banding applicable to every car insurance policy; the bands can vary from one provider to another. A typical banding might look like this:
Up to 6,000 km
6,001 to 9,000 km
9,001 to 12,000 km
12,001 to 15,000 km
15,001 to 20,000 km
20,001 to 25,000 km
Our expert tip: Estimate your annual mileage conservatively but realistically. Providing an estimate that is too low could lead to additional charges during a subsequent review. Many insurers allow you to adjust the mileage during the insurance year. Check the general terms and conditions for car insurance of your provider.
Legal Aspects: Obligations and Consequences of Mileage Disclosure
As a policyholder, you are obliged to provide accurate information about your annual mileage. This is known as a duty. Deliberately providing false information to save on premiums can have unpleasant consequences. At the latest, in the event of a claim, the mileage is often checked.
If you find that you are significantly exceeding the specified mileage, you should report this to your insurer immediately. Most insurers are lenient with slight excesses of ten to fifteen percent. However, significant deviations may result in additional charges. In extreme cases, particularly with deliberate misrepresentation, a contract penalty equivalent to an annual premium or a reduction in benefits in the event of a claim may be imposed. However, courts have ruled that contract penalties for merely negligent exceedances can be disproportionate, and the burden of proof for intent lies with the insurer. Also, consider your no-claims bonus, which remains protected through honest disclosures.
If, on the other hand, you have driven fewer miles, you are safe from penalties. Reporting this can even earn you money. Therefore, it's always advisable to communicate changes in mileage promptly. This not only secures your insurance cover but can also optimise your car insurance costs.
Expert Depth: Current rulings and design tips on mileage
Legal disputes often arise concerning the mileage information in car insurance. An important principle states that a contractual penalty for exceeding the reported mileage may be disproportionate in cases of only negligent violations. The model conditions of the German Insurance Association (GDV) primarily envisage a contractual penalty for deliberately understated mileage. This strengthens the position of consumers who have unintentionally driven more.
Our expert tip: Regularly document your mileage, for example, by taking photos of the odometer reading at the beginning and end of the insurance year or when there are significant changes in your driving situation (e.g., a new commute). This serves as proof for your insurer. If you have driven fewer miles, use this documentation to proactively request an adjustment or refund of your premium. If you have uncertainties regarding the comprehensive and collision insurance conditions related to mileage information, seeking advice may be beneficial.
The following design tips will help you optimally adjust your car insurance to your mileage:
Annual review: Make it a habit to compare your actual mileage with the one recorded in your contract once a year.
Plan for a buffer: When estimating, include a small buffer for unforeseen trips, but don't overdo it. A buffer of five thousand miles can be unnecessarily expensive.
Immediate notification of changes: A new job with a shorter commute or switching to public transportation should prompt an immediate adjustment of your mileage.
Ask for retrospective adjustments: If you have been driving less for some time, ask your insurer for a retrospective premium adjustment. Many providers are accommodating in this regard.
Proactive communication with your insurer is key to achieving a fair premium and full coverage. This is particularly true if you find that you need to adjust your mileage for your fully comprehensive insurance.
nextsure: Your partner for tailored car insurance
Accurate assessment and reporting of your driving performance is just one of many aspects of optimal car insurance. At nextsure, we understand that every driving situation is unique. As a digital insurance portal, we not only offer transparent information but also support in optimising your insurance coverage. For instance, if you find that you have driven fewer kilometres, we assist you in taking the necessary steps with your insurer. Our mission is to offer you tailor-made and easy-to-understand insurance solutions. We are happy to help you review and adapt your car & mobility insurance.
Request an individual risk analysis now: Have your insurance situation reviewed free of charge and receive specific optimisation recommendations.
More useful links
The Kraftfahrt-Bundesamt (KBA) provides statistics on driving performance in Germany.
The Federal Statistical Office (Destatis) provides data on driving performance and fuel consumption.
The German Insurance Association (GDV) provides information on how car insurance premiums are calculated.
The Consumer Advice Centre gives tips on how to save on car insurance.
The Environment Agency offers information on sustainable mobility.
Statista provides statistics on the average mileage of passenger cars in Germany.
Mobility in Germany offers comprehensive data and analyses on mobility in Germany.
FAQ
How do I report fewer driven kilometers to my car insurance?
You can usually report your reduced mileage by phone, email, or through your insurer's online portal. Provide the current mileage and your contract number.
Is there a deadline for reporting reduced mileage?
There is no fixed deadline for reporting reduced mileage. However, it is advisable to do so promptly as soon as you notice a significant reduction, in order to benefit from a premium adjustment as quickly as possible.
Can I also retroactively receive money for fewer kilometers driven?
Many insurers allow for a retrospective adjustment of the mileage and refund premiums. Specifically inquire about this with your insurer. Proactive communication is helpful in this regard.
What are mileage tiers in car insurance?
Kilometer bands are ranges of annual mileage set by insurers (e.g., up to 6,000 km, 6,001-9,000 km). Your classification in one of these bands affects your premium.
How do I best calculate my annual mileage?
Add up all regular journeys (work, shopping) and estimate irregular journeys (holidays, trips). Alternatively, note the mileage at the beginning and end of the year and calculate the difference.
What if I temporarily drive less, for example due to illness?
For short-term changes, immediate notification is usually not necessary, unless the reduction is significant and extends over a longer period of the insurance year. Monitor your mileage and adjust it at the end of the insurance year or with the next premium statement if necessary.
